COMMISSION OF THE EUROPEAN COMMUNITIES (\ ,SITY PF Pl1T~.JU~GH COMC83) 183 final LIB~~i-\i' ~S .. MAY201983 Brussels, 28th March 1983
GIH & EXSHJ\NGE
PROPOSAL FOR A COUNCIL REGULATION (EEC)
amending Regulation (EEC) n° 878/77 on the exchange rates to be applied in agriculture
(presented by the Commission to the
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COM(83) 183 final
• .. EXPLANATORY MEMORANDUM
!/' rm, !vJJ , 'V 2d, v ~ u-u ~ I£ 0 1. On 23 March 1983, the Belgian authorities requested a change in the date of application of their green rate.
Under the terms of Regulation (EEC) No 2792/82 of 19 October 1982, the BLEU ~ green rate was devalued onto its central rate. The new green rate was to come into force on 1 November 1982 for pork, olive oil and wine, but for most other products, including milk and beef, from the beginning of the 1983/84 marketing year for milk and milk products.
Because of the delay in the Council decisions on agricultural prices, the oilk marketing year will not begin on 1 April 1983 and the introduction of the new Belgian green rate is thereby delayed.
2. Consequently, the Belgian authorities request that the new Belgian green rate be introduced on 1 April 1983 for milk and on 4 April 1983 for beef. It is necessary at the same time to revise the new green rate. This new
green rate, accepted in October, was aligned on the t~en central rate of the BF/LF. On 21 March 1983, within the European Monetary System, the central rates were realigned and the central rates for Belgium and Luxembourg revalued. Accordingly, the green BF/LF rate, agreed in October, no longer corresponds to the current BF/LF central rate.
When the green rate, decided in October, enters into force, the result is a positive monetary compensatory amount, as is already the case for pigmeat, for which the green rate, decided on 19 October 1982, has already taken effect.
It is necessary to close this positive ga·p before the dates on which the new rate, introduced by Regulation 3. It is therefore proposed that a revised green rate, based on the revised central rate, be introduced in the BLEU immediately, to come into force on 1 April 1983 for the milk sector, on 4 April 1983 for the beef sector and at the beginning of the various marketing years for the remaining sectors. The consequences of this proposal are shown in the table annexed. / 4. Since this proposal will have the effect of preventing the introduction of positive MCAs in the majority of sectors, it is in full accord with the terms of the communique issued at the end of the Finance Ministers' meeting. Etat membre Taux pivot Taux representatif Eca rt monetaire MCM Incidence (1 Ecu =) appliquer sur les prix ancien nouveau reevaluation/ avant apres a (en :Y.) (1 Ecu => (1 Ecu => · devaluation reeva luat ion/ reevaluat ion; (en i.) devaluation devaluation Be lg i que/ Luxembourg a) secteurs : 44,3662 44,9704 44,3662 1,362 i. ... , .· / Proposal for a· COUNCIL REGULATION (EEC) amending Regulation (EEC) No 171/77 on the exchange rates to· be applied in agriculture • · r THE COUNCIL OP THE EUROPEAN COMt-c!UNJTJES, Having regard to the TreatY, establishing the Eur~pun · Economic Community, · · Having regard to Council Regulation No 129. on the value .or the unit of account and the exchange rates to be applied for the purposes of the common agricuf. tural policy('), as last amended by Regulation (EEq No 2HJ/7J (~. and in particular Article 3 thereof, Ha~ing regard to the proposal from the Commission, Whereas the representative rates currently applicable were fixed by Regulation (EEC) No 8781"17 (~. as last amended by Regulation (EEC) . No ·22V 83 ('); .. . ..- .. (') 0 J No I 06, 30. I 0. 1962; p. lSSJ/61. (~ OJ No L 263, 19. 9. 1973, p. I. (~ OJ No L 106, 29. 4. 1977,r,.P· 27. (1 OJ No L 27 ,29;.1.19Q~,p. ·7 ... .c.;..• . !" • Whereas a new representative rate for the Belgian franc/Luxembourg franc, aligned on the central rate of the Belgian franc/Luxembourg fran~was introduced by Regulation (EEC) No 2792/82 of 19 October 1982 (5) amending Regulation the ~arketing years; whereas, following a change in the central rate of the Belgian franc/Luxembourg franc on 21 March 1983, the new green rate does not correspond to the revised central rate; whereas, therefore, a revised green rate should be introduced in order to prevent the introduction of new monetary compensatory amounts based on a positive monetary gap and in order to eliminate such monetary compensatory amounts already in force in the pigmeat sector; Whereas Regulation (5) OJ No L 295, 21.10.1982, p. 6 • <. ANNEX I BELGIUM/LUXEMBOURG 44 .36~ ·. I ECU -· ~lgian fnncs/L.uxe~boura francs. This rue shall apply: :·_ I April 1983 lor 'ihe milk ·;ni milk ·p;od~cu ;e~·tor: .. ···· ··--·-·---··--·--· ' -· 4 April 1983 for the ~cl and veal wtor, - 4 April 1983 .fo.r the shecpmell and goumut s(Cior, •• 1 .~ - I July 1983 for the sugar and isoglucosc sector, and for duNm "'heat and duN~ "'heu grom and mul, · , . - I Auguu 1983 for the cereals, .,ilh the uception of duNm .,hut and duNm wheu 1roau and •• meal, eggs and pouhrymeal, ovalbumin and hculbumin sectors, ::: ~ -1 November. J.2!3. lo; the pigmcu sector, . •. . - ~ I November 1983 lor ihe olive oil sector • · · · · · - 16 Oec.cmbcr -.. the .,ine however,. other dues may provided for !he diuil: .~ 198~~r sc~tor; be lahon operations ancM'Tic asd rei erred to sn Articles 14 and 14a ol Re1ulation (EEq No 337179, .... , .. -·· :- '=- I January 1984 lor the fishery products sector, .. . ._ . - 1 July 1984 for the seeds sector, . - the'beginninl of the 1983/84 muketin& yeu for the other products for which there is a marke· tin& ycer, - 1 April 1983 in all other cues. Until the new rate enters into force, the following rates apply : 1 ECU = 44.9704 Belgian francs/Luxembourg francs for the pigmeat sector, the olive oil sector, the wine sector and the fishery products sector and 1 ECU = 42.9774 Belgian francs/Luxembourg francs in all other cases • .(- • • .; these new rates applying in this context may differ from the other date of application .of the new ratu in , the wine sector ; · 1 Whereas, i~ order t~ avoid. differing treatment of inter· · dependent products, provision should be made (or the new rates to apply in the cereals (with the exception of duNm wheat) and the eggs and poultrymeat, oval· bumin and lactalbumin sectors with effect from the ume date·; Whereas the Monetary Committee will be consulted; whereas, as this is an urgent matter, the meuuru envi- t saged should ~e adopted in accordance with the condi· tions laid down in Artic_le 3 (2) of Regulation No 129, HAS ADOPTED THIS REGULATION: Articlt I Whereas the rates must be adjusted with proper regard Annex to Regulation (EEC) No 878/77 to their eHccu, in partic'ular on prices, and to lhe situ· be replaced Annex I hereto. ation in the Member States concerned; • lf\ali by Whereas Council Regulation (EEq No 337/79 of 5 Articlt l Fobruary 1979 on the common organization of the market in wine(.Qlas last amended by Regulation This Regulation shall enter into force on the day of its (EEC) .No 2144/~lJ.'?l,provides for certain distillation publication in the Official journal "of tht E11ropta11 operations and .aid . ;wnereas the date of application of Com m 1111 it its. This Regulation shall be binding in iu entirety and directly applicable in all Member States. • • Done at , 1983. ------For tht Council ...!. ' ., ... !6i?J No L s~: .S: l. 1979, p. ·1 ...... {?~J No L 227, J. I. 1982, p. I . • . .. FINANCIAL STATEMENT oau : 25.3.83 1. BUDGET HEADING : APPROPRIATIONS :1983 Titles 1 and. 2 14.087 ~be 2. TITLE : Council Regulation amend.ing Regulation 878/77 with regard to the exchange rates to be applied in agriculture for Belgium anci LuxembourgV ~ 3. LEGAL BASIS : Council Regulation 129 ... AIMS Of PROJECT : Devaluation of the representative rate for tthe Belgian and Luxembourg francs to make it identical with the new representative rate from 1 April 1983 for the milk sector, 4 April 1983 for the beef and veal and sheepmeat sectors and the beginning of ·the 1983/84 marketing year for the other sectors mio ECU 5. FINANCIAL IMPLICATIONS PERIOD OF 1Z MONTHS CURRENTCFI~\CIA~ YEAR FOLLOWING FINANCIAL YEAR ( ) 5.0 EXPENDITURE - CHARGED TO THE EC BUDGET (REFUNDS/INTERVENTIONS) +28 -x~~~~~~~~~ -XM~ 5.1 RECEIPTS +14 - OWN RESOURCES OF THE EC ··············· ··············· ...... 5.0.1 ESTIMATED EXPENDITURE ... 5. 1. 1 ESTIMATED RECEIPTS 5.2 METHOD Of CALCULATION See Annex . . 6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET ? f~/NO 6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? li/NO 6.2 WILL A SuPPLH1ENTARY BUDGET BE NECESSARY ? - YES/~ 6.3 WILL FUTURE BUDGET APPROPRIATIONS UE NECESSARY ? )f:~NO OElSERVA TIONS : The increase of +28 mio ECU in expenditure and the increase of +14 mio ECU in own resources are budget increases. The measure itself enta~ a~ reciuction in expenditure of -4 mio ECU anci a reduction in own resources of -2 mio ECU (see Annex). • • ANNEX I. INITIAL SITUATION AND LEVEL OF AGRI-MONETARY EXPENDITURE AND INCOME FOR BELGIAN FRANC AND LUXEMBOURG FRANC 1. For the Belgian and Luxembourg francs the 1983 budget provided for a MCA of -2.5 and a double rate coefficient of 0.962. The proportion of the appropriations entered in the 1983 budget for the Belgian franc and the Luxembourg franc was thus Table l Mio ECU ------Expenditure 1983 MCAs 3 Double rate on CMOs - 26 MCAs to be deducted from the refunds - 14 TOTAL - 43 ... Revenue Double rate and MCAs on levies - 19 Double rate on sugar levies 3 TOTAL - 22 2. The monetary events of 14 June 1982 and 21 March 1983 along with Council Regulation (EEC) No 2792/82 making the representative rate for the Belgian franc and the Luxembourg franc identical with the central rate from 1 November 1982 for pigmeat and olive oil, 14.12.1982 for wine, 1.11.1983 for fishery products and the beginning of the 1983/84 marketing year for all other products give the following schedule of agri-monetary expenditure: • -~ Table II Mio ECU ------Ex~enditure 1983 1984 MCAs + 10 + 14 Double rate on CMOs - 14 +11 MCAs to be deducted from the refunds 7 5 TOTAL - 11 + 20 Revenue Double rate and MCAs on levies 5 + 8 Double rate on sugar levies 1 + 1 TOTAL 6 + 9 3· The proposed Regulation, which makes the representative rate identical with the new central rate from 1 April 1983 for the milk sector, 4 April 1983 for the beef and veal and sheepmeat sectors and the beginning of the • 1983/84 marketing year for the other sectors brings the agri-monetary expenditure and revenue shown at 2 above to the following level: Table III Mio ECU Ex~enditure 1983 1984 MCAs + 8 0 Double rate on CMOs - 17 0 MCAs to be deducted from the refunds 6 0 TOTAL - 15 0 Revenue Double rate and MCAs on levies - 7 0 Double rate on sugar levies 1 0 TOTAL 8 0 ------II. CONCLUSION ,. 1. The changes in costs from the 1983 budget resulting from the trend of the Belgian franc and the Luxembourg franc and the proposed measures are as follows: , Table IV = Table III -Table I Mio ECU Expenditure 1983 MCAs + 11 Double rate on CMOs + 9 MCAs to be deducted from the refunds + 8 TOTAL + 28 Revenue Double rate and MCAs on levies + 12 Double rate on sugar levies + 2 TOTAL + 14 2. The cost of the proposed measure itself can be estimated at: Table V - Table III -Table II Mio ECU Expenditure 1983 1984 MCAs 2 - 14 Double rate on CMOs - 3 -11 MCAs to be deducted from the refunds + 1 + 5 ------TOTAL - 4 - 20 ------Revenue Double rates and MCAs on levies - 2 - 8 Double rates on sugar levies 0 1 ------TOTAL 2 9 ------